taxation law amendment act

Dear  freind

NEW RENT PAYMENTS ATTRACTING TDS:

The following kinds of new rent payments (which were hitherto not attracting TDS) shall require deduction of TDS if paid or credited to payee on or after the date of assent (w.e.f.13.07.2006).

1.     RENT FOR USE OF PLANT (whether owned by payee or not) and whether rented separately or together with other items mentioned in definition of ‘Rent’.

2.     RENT FOR USE OF MACHINERY (whether owned by payee or not) and whether rented separately or together with other items mentioned in definition of ‘Rent’.

3.     RENT FOR USE OF EQUIPMENT

4.     RENT FOR USE OF FURNITURE AND/OR

5.     FITTINGS

Hence. I request you to kindly deduct and deposit TDS @ 15.3% incase of  rent paid to  individuals or @ 22.44% in case of rent paid to a person other than an individual or HUF, u/s.194-I, w.e.f. 13.07.2006.

Further, in my opinion, car hire charges( car rental charges) will also cover under this,siince, the car is shown under the head PLANT &  MACHINERY  in  depreciation schedule under the ACT.


Thanks & Regards.

Manjunath